The Texas Department of Insurance (TDI) offers tips to help Texans avoid auto insurance scams online, warning that scams and fake policies are on the rise.

Scammers without a TDI license to sell insurance collect money but never use it to buy coverage with an insurance company.

"Then the consumer is in a car collision, attempts to file a claim, and finds out that the policy they have isn't valid, and they're not covered in any form or fashion," said Fraud Unit investigator Capt. Kevin Lemon.

Fraudsters often target victims on social media with unusually low-cost insurance offers.

"They might get lured in by the fact that it's way cheaper than going through an insurance agent. And, unfortunately, you get what you pay for," said investigator Capt. Tyler Hampton.

Hampton and Lemon offer these tips:

• Call TDI's Help Line at 800-252-3439 or look up an agent online to know if they have a TDI license.
• Don't pay for insurance using third-party apps. Insurance company apps are OK.

• If someone tells you that you must act today or you'll lose the offer, that's usually a bad sign. Legitimate insurance plans won't have purchase deadlines. Don't be rushed when shopping for insurance.
• After you buy a policy, call the insurance company directly to confirm that there is a policy in your name.

Hampton said insurance fraud affects everyone, from the person in the car accident with a driver who didn't have insurance to everyone who pays for insurance.

"When insurance companies are out hundreds of thousands of dollars, they pass that down and it causes premiums to go up," said Hampton. "And we all share the burden of that."

Report suspected insurance fraud online or by calling TDI at 800-252-3439.

Resources

• Don't use third-party mobile payment apps to buy insurance
• Insurance fraud could happen to you
• Types of fraud